Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
I did a tax return for a friend who is retired from the federal government and who receives a pension from OPM. He was CSRS, not FERS, and his 30+ years of government service was not covered by social security. He also works as a consultant, and his joint income exceeds $200K.

His return was accepted without question, but his refund came up short $250. He subsequently got a letter from the IRS, saying that they had adjusted his refund, and inviting him to call or write if he had questions.

Well, he did call, and the IRS person he spoke with told him that with AGI > $190K, he didn't qualify for the Govt Retiree credit. Now he has earned income, and I realize that his AGI is too great for him to to receive the Making Work Pay credit, which is phased out at $190K. But I can't find any language, anywhere, to suggest that the Govt Retiree credit is phased out as well.

My friend isn't terribly upset about the $250 - he hardly needs it - but I'm greatly puzzled as to the result. Am I missing something?

Lorenzo
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.